Annual audits of financial statements provide a high level of service to those who use the financial information to evaluate and monitor the financial health of an organization. We follow professional auditing standards on all of our audits to ensure high quality services are provided. Additionally, membership in professional organizations and significant continuing professional education and training ensure that all audit team members are qualified to perform these important services. We communicate throughout the process so the client is kept informed, deadlines are met and all parties are delighted with the end result.
Here’s how we work with our clients in the audit process: Planning – We spend a lot of time getting to know the organization and management. We learn about the operating environment; what potential risks are present (including fraud risks); how financial transactions are approved, recorded and reported in the financial statements; how the business process works; how business ethics are communicated; and make a number of inquiries of management and others within the business. We perform an analytical analysis and test certain assumptions and transactions so that we can prepare an audit process that is tailored to the business. We prepare and send a document request list. We may also send out written confirmations of accounts receivable, debt, equity and related-party transactions.
Fieldwork – When the company books have been closed, we perform tests and analyses at the business office. We review documents, make additional inquiries and observe transactions. Depending on the company’s accounting software, we may complete our work electronically.
Draft reports – When the audit procedures are complete and the work has been reviewed, draft financial statements and footnotes are provided along with adjusting journal entries and schedules to aid in management’s review. To indicate approval, company management signs a representation letter.
Final reports and wrap-up – When all approvals are received, we provide copies of the report to company management and owners and to governmental agencies as required. We coordinate final communications with investor partners and their auditors on the client’s behalf. We wrap-up our files in accordance with auditing standards and record retention policies. Information from the audit is provided for tax return preparation.